Volkswagen, APRR move FRN drama on with contrasting deals

Volkswagen logo on building
By Jon Hay
01 May 2014

Two more instalments in the unfolding saga of the corporate floating rate note appeared this week, with a €500m 4.9 year deal by Société des Autoroutes Paris-Rhin-Rhône on Tuesday and a €300m three year by Volkswagen Bank on Wednesday.

Floating rate issuance clearly remains popular with investors — APRR’s deal drew a €1.3bn book. But the structure continues to generate controversy among bankers over the finer points of pricing.

One syndicate banker this week described as “absolutely retarded” the idea of translating an FRN’s pricing to fixed ...

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